"Soon, it (RTA proposal) will be taken to the Cabinet. There is much progress in that," Bansal told reporters here, adding the Ministry has done much of the leg work to move forward on the issue.

The formation of the Rail Tariff Authority (RTA), proposed in the rail budget 2012-13, has to be approved by the Cabinet.

RTA is expected to look into the operational expenditure, including the diesel and power cost for train operations, and suggest hike in passenger fares to absorb the escalated cost.

Currently, the railways is facing a loss about Rs 24,000 crore in passenger fare segment. The cash-strapped railways is in the need of financial bailout as many of its ongoing projects are facing acute shortage of funds.